Global Economic Crisis 2008 – Rocking the Principles of the Global Economy
The former chairman of the Federal Reserve, Allan Greenspan explained the 2008 financial collapsed as a one in a hundred years event
. The crisis was surely different in extent from recent financial crises, such as the explosion of the dotcom bubble in the year 2000 or the Asian financial collapse in 1997 but there had been disputes among the analysts whether the worst is over or the worst is yet to come.
Signs of improvement were seen by the end of 2009 wherein the markets were recovering and bankers' bonuses were again increasing. Unemployment is predicted to increase in many countries including the United Kingdom in 2010 but there are doubts of aftershocks from the great financial storm of 2008. Confidence has remained fragile and the cost of the financial bail outs and incentive packages has been very excessive. In many countries the banking crisis brought about a financial crisis and in some worst affected states this monetary crisis had frightened them to also become an absolute debt crisis. The fear of a new global economic downfall, going into a double dip recession remained strong specifically since many of the elements of the international political economy which have given rise to the crises were not yet discussed. The assurance of international agreements in reforming the global financial plan has yet to be made. Disasters were blocked on the later part of 2008 but it is not clear if the fundamentals had been laid to sustain the improvement.
Global Economic Crisis 2008 Rocking the Principles of the Global Economy